Report names best cities with housing growth potential

ZillowPublished: January 7, 2014 9:19AM

By Natalie Wise

When it comes to successfully investing in the housing market for 2014, it pays to look at smaller urban areas with great growth potential.

Which cities are the best to snap up a housing investment? Forbes chose the top 20 cities that have high population growth, high job growth and are still viewed as under-valued, with prices expected to rise.

The No. 1 city for investors in 2014 is Fort Worth-Arlington, Texas, followed by another Texas metro: the Dallas-Plano-Irving area at No. 2. Prices in Fort Worth are around $168,000 about 20 percent below value, with a 25 percent 3-year growth forecast.

No. 3 is the Charlotte-Gastonia-Concord area of North and South Carolina. The greater Nashville area comes in at No. 4 with slightly higher home prices but at 16 percent below value and a decent 23 percent growth outlook.

The Houston area is No. 5, followed by the Atlanta metro at No. 6. Oklahoma City is No. 7 on the list. The Orlando-Kissimmee area of Florida is No. 8 on the list, at 35 percent growth potential.

Las Vegas, No. 9, has a very high future growth rate at 58 percent. Boise City, Idaho, is another area for potential investors to look, at No. 10 on the list. Grand Rapids, Mich., comes in at No. 11, with a home price of around $138,000.

The Tampa-St. Petersburg-Clearwater, Florida area, is another area investors should consider purchasing a home. Homes prices are around $165,000 and the area has a 32 percent growth outlook over the next 3 years.

The Ft. Lauderdale area, south of Tampa, is No. 13, followed by Salt Lake City. Boston finds itself towards the bottom of the list at No. 15, with high home prices only 4 percent below value. Seattle, No. 16, faces similar numbers with houses only 5 percent below value.

The Twin Cities metro of St. Paul and Minneapolis is No. 17, followed by Virginia Beach, Phoenix and lastly, Louisville, Ky.